By default, digital goods and services are available worldwide. If you want to restrict where they are available, then you need to set up shipping areas for where they can be sold. Because shipping rates are never shown for these types of products, the rate you create for the area should be $0, but can be anything, as it won't be shown. If a customer enters a shipping address that does not fall into an available shipping area, then they will not be able to purchase the restricted goods.
To restrict the availability of digital goods and services:
Navigate to "Store" then to "Setup" and then to "Shipping". In Advanced Settings, click "Edit", then uncheck the boxes in the Digital & service goods area to restrict digital downloads and/or services. Use a shipping rule to create a shipping area that covers where your goods are available and rate that has a $0 value.
